Cap on student visas could wreak financial havoc on Ontario universities, colleges: officials

Universities and colleges across Ontario are concerned about the federal government's plan to reduce the number of international students granted permission to study in Canada.

Organizations that represent the post-secondary institutions say the cap will put a strain on their budgets.

Steve Orsini, president and CEO of the Council of Ontario Universities wants the government to reverse its decision to cap the number of new study permits it issues over the next two years.

He saidmany universities are already in perilous financial situations.

"We think a more refined, targeted approach would be better policy and not impact the good performers that rely on that funding or revenue from international students to operate," Orsini said in an interview.

Orsini said the cap also unfairly punishes responsible institutions alongside bad actors in the post-secondary sector.

Immigration Minister Marc Miller announced new limits to the international student program Monday, including a 35-per cent reduction in the number of study permits it issues this year.

WATCH |Canada to cap number of international students:

Canada to cap number of international students

8 months ago

Duration 2:54

The federal government has announced it will cap the amount of international student permits it will approve for two years. The immigration minister says the change will help prevent students from attending sham institutions.

The cap comes in response to a recent surge in international students and concerns that some institutions are relying on international enrolments to boost revenues, without offering necessary housing or a quality education.

According to the council, at least 10 Ontario universities were already forecasting a combined operating deficit of $175 million this year, growing to $273 million next year.

The newly announced cap would likely increase these deficits without other measures to compensate for the revenue shortfall.

More careful approached needed,spokesperson says

Orsini said the federal government should take a more careful approach and go after institutions that are not taking in international students responsibly.

"The federal government needs to go back to the drawing board to better target their measures to go after the (institutions) that they should be going after," Orsini said.

"Ones that have exponential growth in students, that don't provide supports, the wraparound services or housing."

Part of the challenge facing Ontario post-secondary institutions is the provincial government's freeze on tuition fees. It has forced institutions to increase their dependence on tuition fees from international student tuition, which are considerably higher than those for Canadian students.

Ontario's Progressive Conservative government introduced a 10 per cent tuition cut in 2019 as it cancelled the former Liberal government's free tuition program for low- and middle-income students. It has frozen fees at that level since then.

A government commissioned report released in November said Ontario should end its post-secondary tuition freeze and increase per-student funding to its universities and colleges.

The report, which was put together by an external expert panel, said ending the tuition freeze and boosting per-student funding would greatly help post-secondary institutions.

Orsini said he would like to see the provincial government implement the panel's recommendations.

"We're at a critical juncture. We're asking the province to implement those recommendations urgently."

Decision 'a little bit reckless,' college president says

David Orazietti,president of Sault College,which has locations in Toronto, Brampton, and Sault Ste. Marie, said the cap is going to be devastating for the college.

Foreign students now outnumber Canadians at 10 of Ontario's 24 publicly funded colleges, including Sault College.

Nearly 3,000Sault College students are enrolled in programs delivered by private partners. Once the federal government's plan takes effect, the students willno longer be eligible to work in Canada after they graduate.

Orazietti saidthat will kill enrolment.

The expected drop in enrolment means "roughly a $40 million hit to our budget and there are other colleges that are in the exact same situation," he said.

"This decision, I think, was a little bit reckless, if I can say that."

Alex Usher, president of the consulting firm Higher Education Strategy Associates,said there is going to be a significant financial impact on post-secondary institutions as a result of the cap.

"The issues for this government are not just who gets the spots," he said."It's what do we do with the institutions who are suddenly going to see a huge drop in income."